VZ - Why You Should Diversify Your AT&T And Verizon Positions With KT Corporation

• The telecommunications sector is attractive to investors due to its stable cashflows, low multiples, and high dividend yields. However, it has produced lackluster returns for the past 10 years.
• AT&T and Verizon both offer attractive investment propositions at their current valuations.
• Nonetheless, diversifying our exposure to the sector by investing in other countries can enhance our returns and diminish our exposure to US-specific risks.
• KT Corporation is one of the three leading telecom companies in South Korea and is positioned to outperform both AT&T and Verizon in the next few years.
• KT is also one of the cheapest telecom firms in the world, with an EV/EBITDA of 2.31x and a FCF yield of 18.60% at the current price of $14.23.

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